TORONTO, Oct. 18, 2013 /CNW/ - Today, the Greater Toronto Airports
Authority (GTAA) and Air Canada announce an enhanced commercial
relationship to further develop Toronto Pearson as a global hub. In
addition, the new commercial agreement is designed to deliver continued
improvements to customer service, offering Canadians greater flight
frequencies to existing markets and opening up access to more global
destinations.
"As Canada's largest airport, it is important to work with our air carriers to further develop Toronto Pearson as
North America's premier gateway. This agreement with Air Canada will
allow us to continue to support our local and national economy, improve
service levels for all of our passengers, and help Canada to compete
globally," said Howard Eng, President and CEO of the GTAA.
"This agreement provides momentum to our strategy to develop Toronto
Pearson into an even stronger North American gateway and a truly global
airline hub. It will transform our relationship with the GTAA, enabling
us to better work together to enhance the Toronto Pearson experience
and position Air Canada to capture a larger share of growing
international traffic flows on a more cost effective basis," said Ben
Smith, Executive Vice President and Chief Commercial Officer of Air
Canada. "Toronto has the potential to become a preferred global
routing because it offers some of the best elapsed travel times between
the U.S. and major centres in Europe and Asia. At Toronto Pearson, Air
Canada customers benefit from dedicated transborder and international
Maple Leaf Lounges featuring concierge service and a newly streamlined
transit process to expedite connections; all reasons why Air Canada and
Toronto Pearson are the best options for travel to and from North
America."
The agreement, which takes effect on January 1, 2014, is for an initial
five year term and includes annual fixed aeronautical fees for Air
Canada, representing its share of aeronautical costs in relation to
landing fees, general terminal charges and apron fees. The fixed annual
fees may be adjusted in certain circumstances, including instances when
fees for all other carriers operating at Toronto Pearson are
adjusted. The initial five year term will be extended for a further
five years, if agreed passenger volumes are met.
The agreement commits both Air Canada and the GTAA to continued
passenger service improvements, including baggage delivery and aircraft
de-icing wait times.
The GTAA continues to maintain rate setting autonomy for all air
carriers and business partners operating at Toronto Pearson, including
its aeronautical charges, the Airport Improvement Fee and other
commercial fees for airport tenants and air carriers. This
non-exclusive agreement, which provides Air Canada the opportunity to
earn rebates based on substantial incremental passenger volumes in
excess of certain growth targets, maintains the GTAA's ability to enter
into similar commercial agreements with other air carriers, as well as
to continue to enhance the travel experience for Toronto Pearson
passengers.
About the Greater Toronto Airports Authority (GTAA):
The GTAA is the operator of Toronto Pearson International Airport,
Canada's biggest airport and one of the largest airports in North
America in terms of passenger and air cargo traffic. In 2012, Toronto
Pearson handled 35 million passengers and is ranked 2nd largest in international passenger traffic in North America. The focus
of the GTAA continues to be on competitiveness, growing the airport's
status as an international gateway, meeting the needs of our passengers
and ensuring the long-term success of the organization, our airline
customers and the regional economy.
About Air Canada
Air Canada is Canada's largest domestic and international airline
serving more than 175 destinations on five continents. From Toronto
Pearson, it operates up to 380 return flights a day and serves up to
136 destinations worldwide: This includes 30 destinations in Canada, 44
in the United States, 34 in the Caribbean, Mexico and Central America,
16 in Europe and the Middle East, 5 in Asia, 6 in South America and one
in Australia. In 2012, Air Canada served 19.1 million arriving and
departing passengers at Pearson. As Canada's flag carrier it is among
the 20 largest airlines in the world and in 2012 served close to 35
million customers. Air Canada is the only international network
carrier in North America to receive a Four-Star ranking according to
independent U.K. research firm Skytrax that ranked Air Canada in a
worldwide survey of more than 18 million airline passengers as Best
Airline in North America in 2013 for the fourth consecutive year. Air
Canada is a founding member of Star Alliance, the world's most
comprehensive air transportation network serving 1,328 destinations
in 195 countries. For more information, please visit: www.aircanada.com. Follow @aircanada on Twitter and be a fan on facebook.com/aircanada.
Forward-Looking Information
This news release contains certain forward-looking information regarding
the commercial agreement entered into by the GTAA and Air Canada,
including statements regarding: the further development of Toronto
Pearson into an even stronger North American gateway and global hub;
the delivery of continued improvements to customer service; the
offering of greater flight frequencies to existing markets and the
opening up of access to more global destinations; the positioning of
Air Canada to capture a larger share of growing international traffic
flows on a more cost-effective basis; Toronto's potential to become a
preferred global routing; the date the agreement takes effect; the
initial term of the agreement and any extension; the adjustment of
fixed annual fees; the opportunity for Air Canada to earn rebates;
continued passenger service improvements; the GTAA's ability to enter
into commercial agreements with other carriers; enhancing the travel
experience for Toronto Pearson passengers; and the GTAA continuing to
support its local and national economy, improve service levels for all
of its passengers and help Canada compete globally. This
forward-looking information is based on a variety of assumptions and is
subject to risks and uncertainties. Forward-looking statements cannot
be relied upon due to, amongst other things, changing external events
and general uncertainties of the business. Actual results may differ
materially from results indicated in forward-looking statements due to
a number of factors. Please see the documents filed by the GTAA and Air
Canada with securities regulatory authorities for a discussion of such
factors, risks, uncertainties and assumptions related to the
forward-looking information.
Any forward-looking information contained in this news release
represents the GTAA's and Air Canada's respective expectations as of
the date of this news release and are subject to change. The GTAA and
Air Canada each disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required under
applicable securities legislation.
SOURCE Greater Toronto Airports Authority